What would happen if I stop payment on a large payday cash advance check?
Question by Ang: What would happen if I stop payment on a large payday cash advance check?
Would they let me just pay them back in smaller payments? Or would I get in some kind of trouble?
1. I have not stopped payment yet, it’s due to come thru the bank Monday, do you think I can call them beforehand and set smallest payment up?
2. My check will not bounce, my bank will cash it and i will go negative a grand.
3. This is a store lender, check-smart, not internet lender.
Best answer:
Answer by Answer Guru
Well here’s something I just pulled up: “If the account is short on funds to cover the check, the borrower may now face a bounced check fee from their bank in addition to the costs of the loan, and the loan may incur additional fees and/or an increased interest rate as a result of the failure to pay”. That sounds serious, unless you know your going to have doubled that check in like 3 months, I would just pay and get it over with.
Give your answer to this question below!
If you make stop payment that is okay. Afterwards they will contnue to call constantly. They will soon send you a letter in how they can work with you in getting it paid in full by making small installment payments.
If you can’t meet that obligation, they will then sell the loan to a third party agency and they will come after you by either reporting this on your credit report or taking you to small loan court.
Best action, work with company to pay them back in small portions and get out of this headache. I was in this position 3 years ago and it was a financial nightmare. I have turned things around totally and you can too by spending and saving wisely.
You could be arrested for offering a false instrument.
The loan company can demand payment in full, sue you, destroy your credit.
By stopping payment you have not lived up to your end of the contract and they can now ask for the balance to be paid in full. The time to ask for a payment plan was BEFORE you decide to stop payment on a check, not after. They are now going to be hit with a fee from their bank and tack that amount onto your loan . . . if not then send it to a collection agency and report it on your credit.
You are beginning to learn the folly of payday loans. Most people who get them can least afford them and end up being in debt for decades. You made a pact with the devil. Good luck getting out of this.